Common use of Pension Plan Deductions Clause in Contracts

Pension Plan Deductions. Once qualified as above, Pension Plan deductions for Regular Reduced Hours employees will be based on base earnings for the position and then pro-rated in proportion to the ratio of normal (scheduled reduced) hours to base hours. Example: Base rate (earnings) $45,000 Base hours 35 Normal hours 20 YMPE for year $32,200 Calculate 4% of the base earnings up to the first $32,200 (4/100 x $32,200 = $1,288) Calculate 6% of the portion of base earnings exceeding the first $32,200 ($45,000 - $32,200 = $12,800) (6/100 x $12,800 = $768) Calculate proportional Pension Plan contributions ($1,288 + $768 = $2,056) (20/35 x $2,056 = $1,174.86). Calendar service will be used to determine eligibility for retirement and death benefits (currently for pension purposes as Eligible Service or Continuous Employment). Service credit to define the years of Pension Plan membership (years of membership in the Pension Plan) for pension calculation purposes (currently defined by the Effective Date on Pension and Insurance) is prorated. See pension calculation example below. The Service Credit starts from the date of joining the Pension Plan. Service for termination benefits is to be credited on a calendar basis starting with the date of hire and is not prorated.